The Scottish Government has been urged to provide a benefits uplift of up to £100 a month for young parents penalised by Tory welfare rules.
Charity One Parent Families Scotland says a higher rate of Scottish Child Payment would help slash “staggering” poverty rates.
Under Tory Government rules, young parents under 25 get less support through Universal Credit because of their age.
The charity says couples are around £100 worse off per month compared to the old benefits system, while single parents are £65 a month worse off.
OPFS have campaigned for the penalty to be axed but believe the devolved administration should step in.
The Scottish Government’s £20-a-week SCP is currently paid to children under 6 and the charity says an enhanced rate should be made to young parents.
OPFS Chief Executive Satwat Rehman said: “We know from our work with young parents that daily struggles over meeting living costs can make parenting harder and can have long-term effects on the wellbeing of both children and parents.
“We want to see the Westminster Government reverse the unjust young parent penalty to reflect the costs of raising a child and equalise the equal National Living Wage for those under 23.
“In the meantime, we are calling on the Scottish Government to act urgently to mitigate this inequality and address the dire situation facing young families by providing a ‘top up’ through the SCP to all households impacted by the young parent penalty. Children in poverty can’t afford to wait.
“At a minimum, this payment should bring young parent families’ support through social security in line with that provided to parents aged 25 and over.”
It comes as a new report shows that 55% of children in a house with a mum under 25 live in relative poverty in Scotland.
Ed Pybus of the Child Poverty Action Group in Scotland said: “It is not right but not surprising that young parents are more likely to be in poverty.
“The social security system penalises them and they face lower wages and greater barriers to employment. That’s why the UK Government must immediately end the under 25 penalty in universal credit by paying parents under 25 the same rate as other working age adults.
“We urge Holyrood ministers to explore how they can use their social security powers to mitigate the under 25 penalty, and to do more to ensure young parents have the childcare they need to access the education and job opportunities available to them.”
A Scottish Government spokesperson said: “We agree that Universal Credit should be paid at the same amount no matter the age of the person applying. This would help many people and families who are facing hardship due to this age discrimination that the UK Government has introduced.
“This is in contrast to the significant support the Scottish Government is supplying to all low income parents.
“By the end of 2022, the Scottish Government’s package of five family payments will be worth over £10,000 for eligible families on the lowest incomes by the time their first child turns 6 – and £9,700 for subsequent children.
“This includes the Scottish Child Payment, which we doubled to £20 per child per week in April and will increase again to £25 when we extend it to under 16s by the end of the year – a 150% rise.”
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